10/22/2026
The Value of Wheat Forage
During May, I had the opportunity to attend multiple OSU wheat plot tours. In these events I talked with producers across Western Oklahoma and one of the most common topics was dual-purpose wheat. Given high cattle price projections for this and next year, I’d say that dual-purpose is still an attractive business. However, with current soil temperatures and drought conditions across Western Oklahoma, planting early for forage carries significant risks. Before investing extra capital into higher seeding rates, more nitrogen, and early planting risks, you must evaluate if wheat forage is actually worth it and what the margin size looks like.
One advantage of grazing wheat is the cheap forage cost. However, what is the real cost of wheat forage? There are two ways to determine it. 1) Calculating the additional input costs and yield loss of wheat enterprise, and 2) Checking local rental rates. Both can be calculated per acre, head or pound gained. Because the rental rates vary per region, let’s analyze the extra wheat costs for forage production.
The extra inputs to consider for forage include increasing seeding rate from 60 lbs. to 120 lbs., adding 40 pounds of nitrogen (besides the base application for grain) to produce half ton or 1000 lbs. of forage, paying the fertilizer application, and accounting for the yield loss which sits between 10%-15%.
For example, the extra cost would be $85 per acre, assuming input costs of $18 for an extra bushel of seed, $33 for 40 lbs. of nitrogen using urea at $614/ton plus application, and $34 yield loss (6 bu at $5.5 selling price). Using a stocking rate of 1.2 acre per head (500 lb in 120 grazing days) the estimated costs are $102/head and $0.57/per pound gained
The cost of wheat forage is only one part of the total Cost of Gain (COG). Besides forage, other expenses include medicine and vaccinations, supplemental feed/hay (if it provided), financial costs (if a loan was used for purchase cattle or covering operating costs), insurance premiums, and labor. Wheat forage cost helps show the potential profit margins. Margin is calculated as Value of gain (VOG) minus total COG. If the difference between VOG and forage COG is narrow, adding the other operating costs will wipe out profits. In simple terms, that difference tells you how much money is left to cover the other operating expenses to keep the business profitable.
Finally, calculating these values provides two crucial advantages. First, it helps determine what your break-even price is or what price floor you will need if you plan to sign a LRP or Put contract (which are useful tools under current cattle volatile market). Second, the forage COG serves as a key risk management information and a trigger for decision-making. If dry conditions remain through the forage planting window, skip the extra input costs and adjust your plans to grain only, in case it fits with your overall goals. Basically, the extra cost for wheat forage is the additional investment and risk required to convert grain only crop into a dual-purpose enterprise. I highly encourage you to do this exercise with your own number, because if the plan doesn’t work on paper, it will probably not work in real life. If you need help with your calculations or if you are curious about Ag business plan, please contact OSU Extension office in your county.
Article by Alberto Amador, West Area Ag Economics Specialist
